By Justin Franz
CALGARY — By the end of business Tuesday, Canadian Pacific will own Kansas City Southern.
Last week, KCS shareholders voted in favor of a $31 billion deal to merge with CP. Of the 64.5 million shares voting at a special meeting last week, approximately 99.6 percent were cast in favor of the adoption of the proposed merger agreement. CP officials said that the deal would officially close on Tuesday, December 14, at which point KCS will be put into a blind trust until the U.S. Surface Transportation Board approves or denies the deal.
While CP will own KCS, little will change in the executive suits or trackside, at least initially. KCS will continue to operate as normal without direct influence from CP.
“Shareholders of both CP and KCS overwhelmingly supported this transformative proposal to create the first U.S.-Mexico-Canada rail network,” said Keith Creel, CP President and Chief Executive Officer, who will serve as the president of the combined railroad. “With strong shareholder support, we are excited to complete the steps required to close the CP-KCS transaction into the voting trust, a critical milestone in the journey to make Canadian Pacific Kansas City a reality.”